Analyzing a build to suit project

[Brady Hastings]

Our company does build to suit projects and leases them out to other businesses. I am wondering if anyone know how the bank is going to evaluate what a build to suit project after completion and being fully leased up is worth. Let's say the building is an industrial basic steel building that total will cost $500,000 to build, and it's a 10,000sqf building renting at $.06 per square foot. It has spots for at the most 4 tenants. After it's all leased up the building will be cash flowing $6,000 per month. So what is a formula or what do they look for when they evaluate the property is we go to refinance after a year. Let's say we put $100,000 down payment and financed the rest at 4.5% for 20 years. I am just figuring out how to scale our business by using private lenders and trying to get them their money back after a refinance.